Venu Sports, the Disney-Fox-Warner Bros. streaming service, blocked by judge

Venu — the planned sports streaming service from Walt Disney Co., Fox Corp. and Warner Bros. Discovery — was dealt a significant setback Friday when a federal judge put a freeze on the service’s launch.

Rival sports streamer Fubo had challenged the joint venture, saying its formation was a violation of U.S. antitrust laws.

U.S. District Judge Margaret Garnett appeared to agree, issuing a temporary injunction that said Fubo was likely to prevail on claims that the partnership would “substantially lessen competition and restrain trade.”

The aim of the joint sports platform, announced in February, was to provide a one-stop destination that would appeal to younger sports fans who are bypassing traditional pay-TV subscriptions. The three traditional media companies had joined forces in an effort to better compete with deep-pocketed tech companies, including Amazon Prime Video, that are spending heavily to offer live sports.

Fubo Chief Executive David Gandler called the ruling a “victory” for his company and for consumers.

“This decision will help ensure that consumers have access to a more competitive marketplace with multiple sports streaming options,” he said in a statement.

He added that the company will continue to fight and is seeking “equal treatment from these media giants, and a level playing field in our industry.” Gandler said in the statement that the company plans to move forward with its lawsuit against the Venu partners for antitrust practices

The companies, in a statement, pushed back Friday on the judge’s ruling.

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“We respectfully disagree with the court’s ruling and are appealing it. We believe that Fubo’s arguments are wrong on the facts and the law, and that Fubo has failed to prove it is legally entitled to a preliminary injunction,” ESPN, Warner Bros. Discovery and Fox said in a joint statement. “Venu Sports is a pro-competitive option that aims to enhance consumer choice by reaching a segment of viewers who currently are not served by existing subscription options.”

The three companies were racing to launch the service this fall in time for the pro football season, which begins next month.

The service was designed to pool content from the three media giants, which have rights to the NFL, NBA, Major League Baseball, National League Hockey, major pro tennis tournaments and college sports. The companies planned to bundle Venu with their services, ESPN+, Max and Hulu.

This is a developing story.

Staff writer Stephen Battaglio contributed to this report.